Key Facts on Amazon and Microsoft Earnings
Amazon Web Services (AWS) saw a significant revenue growth of 28% year-over-year in Q1 2026, totaling $37.6 billion, marking its fastest growth rate in 15 quarters. Overall, Amazon’s revenue rose 17% to $181.5 billion, with an operating income of $23.9 billion, up from $18.4 billion the previous year. The AWS backlog stands at $364 billion, excluding a recent $100 billion deal with Anthropic.
In comparison, Microsoft reported an 18% revenue increase to $82.9 billion in its fiscal Q3 2026, with Azure’s yearly growth stabilizing at about 40%. Although Microsoft’s AI business reached an annualized revenue run rate of $37 billion, its rising capital expenditures are concerning to investors, projecting around $190 billion for the year. Microsoft’s market cap needs to rise by 30% to hit $4 trillion, while Amazon’s needs a 38% increase.
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